Berkshire Hathaway, run by billionaire Warren Buffett, lost $43.8 billion due to the decline in US stocks in the second quarter of 2022
According to Arabiya Net, however, the company achieved operating profits of $9.3 billion, as reinsurance gains and BNSF railway revenues exceeded losses in the Geco car insurance unit, after an increase in insurance policies due to a lack of spare parts. Spare parts and used car prices.
The increase in interest rates and dividends contributed to insurance companies achieving more gains from investments, while the rise of the US dollar boosted profits from investments in European and Japanese debt instruments.
James Shanahan, an analyst at Edward Jones & Co., which gave Berkshire a neutral rating, said that despite the huge net loss, the results reflected the firm's solid position.
The company is performing well despite interest rate hikes, inflation pressures and geopolitical concerns, he added. This gives me confidence in the company if there is a recession.
The company has also slowed stock sales, and it still has $105.4 billion of cash to tap.
